Grades 6-8, 9-12
Publication
What’s the Cost of Spending and Saving?
Objective
Students will be able to:
- Identify the costs and the benefits of spending and saving.
- Calculate investment accumulations for various interest rates and investment time periods.
- Compare the benefits and costs of saving and investment strategies that vary over one’s life cycle.
- Analyze and explain the impact of amount saved, time, and rate of return on financial accumulations.
Standard
Standard: 3
- Students will understand that: People who have sufficient income can choose to save some of it for future uses such as emergencies or later purchases. Savings decisions depend on individual preferences and circumstances. Funds needed for transactions, bill-paying, or purchases, are commonly held in federally insured checking or savings accounts at financial institutions because these accounts offer easy access to their money and low risk. Interest rates, fees, and other account features vary by type of account and between financial institutions, with higher rates resulting in greater compound interest earned by savers.
Concepts
In this personal finance lesson, students will learn how compound interest makes savings grow.
Book Info
This lesson is part of Financial Fitness for Life 9-12, 3rd Edition and provides the slides and activities with educational technology tools. For full access to the book, shop the teacher guide and student workbook below.
Teacher Guide |
Student Workbook |
Available in eBook and hard copy |
Available in eBook and hard copy |
Description
This lesson examines the benefits and costs of spending and saving. The students learn how compound interest makes savings grow. Compounding provides an incentive to save and invest early. The benefits of saving and investing when you are young can increase substantially over time when funds are allowed to compound.
Resources
Related Resources
Content Partner
Grades 6-8, 9-12
PBS-NOVA Financial Lab
Grades K-2, 3-5
Curious George Economics
Grades K-2, 3-5